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GA HB1001
Bill
Status
Introduced
2/11/2016
Primary Sponsor
Tom McCall
Click for details
AI Summary
- Creates a new "installment pawn transaction" category for pawn loans secured by a motor vehicle or motor vehicle certificate of title, with fixed repayment terms not to exceed 24 months (or 720 days) and substantially equal monthly installment payments
- Caps interest and pawnshop charges at 25% of principal per 30-day period for the first 90 days and 12.5% thereafter, with interest calculated on a simple daily basis (365-day year) and prohibits pre-computed, add-on, capitalized, or compounded interest
- Allows borrowers to prepay or redeem the vehicle at any time without penalty by paying the outstanding principal balance plus accrued interest and charges through the date of repurchase
- Grants pawnbrokers the right to accelerate the maturity date upon missed payments, provided they send written notice via certified mail detailing amounts owed, the accelerated maturity date, and grace period expiration; borrowers receive a 30-day grace period to cure missed payments before forfeiture
- Requires detailed written disclosures to borrowers in compliance with the federal Truth in Lending Act, including the annual percentage rate, payment schedule, prepayment rights, grace period terms, and all applicable fees such as lien registration, storage (up to $5.00/day), and repossession ($50–$250 based on distance)
Legislative Description
Pawnbrokers; installment pawn transactions with a fixed term for transactions involving the pledge of a motor vehicle as security; provide
Last Action
House Second Readers
2/17/2016
Full Bill Text
No bill text available